'Fiat paper money creates moral hazard on the side of the money users — the citizens, the banks, and the governments — because they sooner or later come to realize that the masters of the printing press have the power to bail out virtually any bankrupt firm or government. Thus they engage in more or less reckless financial planning, expecting that the monetary authorities will not allow a great mass of reckless planners to go bankrupt. This speculation has been borne out by the last 30 years Public and private debts are at record heights all over the world.'

https://mises.org/library/what-causes-moral-hazard